Stocks plunged on Monday with the Dow down by 400 points following a fresh round Western sanctions hit Russia’s financial markets, though the market’s losses were offset due to reports that Russian as well as Ukrainian officials are meeting to discuss a potential end to the conflict, even in the midst of Russian troops are continuing their assault in the capital city of Kyiv.
Stocks fell sharply at the time of opening: The Dow Jones Industrial Average was down 1.2 percent, about 400 points while the S&P 500 lost 1.1% and the Nasdaq’s tech-heavy Composite close to 1%.
The price of energy jumped yet again on Monday and Brent crude rising over three percent, to over $100 per barrel, with experts warning the prices may go higher amid the fallout from the conflict.
The Russian ruble fell as much as 30 percent in comparison to dollar U.S. dollar on Monday in the wake of the latest round of Western sanctions, while the Moscow stock exchange was shut for the day and Russia’s central bank more than tripled interest rates to 20%.
The move comes after the most recent round of Western sanctions, which have hit Russia’s economy hard: The United States joined European allies this weekend to block Russian banks off the messaging system between banks, SWIFT, which connects more than 11,000 financial institutions in over 200 countries.
Even though stocks were trading lower Monday, market sentiment was buoyed after stories the Russian and Ukrainian officials are gathering near the border in order to discuss an agreement to end the conflict.
Despite officials meeting for talks, Russia has continued its attack on Ukraine and has entered the second-largest city of the country during the week (though Ukrainian troops have put more effort than was expected and hold the capital of Kyiv).
“Putin’s campaign against Ukraine has proven to be a huge blunder for his nation as his forces fail to take any major cities while the international community responds with a crushing series of financial counterattacks,” states Vital Knowledge founder Adam Crisafulli. Although stocks have taken losses due to the ongoing fighting, “investors will obviously be paying close attention” to keep track of the negotiations with Russia in the Ukraine and Russia. Ukraine.
Markets have undergone volatile trading during the past few weeks due to tensions between Russia and Ukraine have escalated, with Russian President Vladimir Putin officially launching his military invasion of Ukraine on Thursday. Stocks retreated strongly on Friday — with the Dow jumping 800 points for its most successful day since the end of 2020–as reports first surfaced regarding Russia saying it would be willing to engage in negotiations with Ukraine.